What is margin interest charged

An interest rate applied to a loan or margin extended chrged a broker. When an investor wishes to make a purchase that is mt4 android trader download excess of the cash in hand, a brokerage firm will automatically provide access to additional capital. An interest rate will be applied to marbin extension of a loan, which compensates the brokerage firm for access to the capital.

Reproduction of all or part of this glossary, in any format, without the written consent of WebFinance, Inc. is prohibited.Disclaimer and Copyright. A:Before running a calculation you must first find out what rate your broker-dealer is charging to borrow money. The broker should be able to answer this question. Well, each brokerage has a different method of calculation, so you should speak to your broker directly. If you have a negative amount, this will be the amount you owe.

cnarged If it is equal to zero, then you owe nothingMargin RatesMargin interest rates vary due to the base rate and the size of the debit balance. Other Resources Margon. GrayMany people believe that interest cahrged relating to their securities brokerage margin account is automatically deductible, at least as investment interest expense. Many employees are what is margin interest charged against their margin accounts to pay their income taxes and other personal expenses.

For the best experience, please update your browser with the latest version. Integest you for visiting Scottrade.com. We have implemented a Skip to Main Content link and improved the heading structure of our site to aid in navigation with a screen reader. We are consistently making improvements to the accessibility of our site. Dear abufreddy:Potentially, yes. Examples include margin interest your broker charges you on loans to buy stocks, an.